State committees green-light sale of hospital property

The sale of 49.65 acres of the former Norwich Hospital property on the Norwich side was approved by two General Assembly committees on Thursday, as the buyer expressed a desire to create something that will bolster Eastern Connecticut’s tourism and entertainment industries.

The sale of 49.65 acres of the former Norwich Hospital property on the Norwich side was approved by two General Assembly committees on Thursday, as the buyer expressed a desire to create something that will bolster Eastern Connecticut’s tourism and entertainment industries.

“It was wonderful,” Thames River Landing LLC President Ron Shelton said after the Finance Revenue and Bonding Committee approved the sale in a unanimous voice vote. The Government Administration and Elections Committee also approved the transaction.

Shelton’s Farmington-based company will buy the acreage for $300,000 from the state and later plans to demolish most of the 27 buildings currently standing on the site.

A mixed-use development is planned but Shelton gave no further details.

Department of Administrative Services Commissioner Donald DeFronzo and Shelton spoke before both committees in Hartford. When asked about possible uses, DeFronzo alluded to interest in the former psychiatric hospital from television shows focused on supernaturalism.

“Maybe it will become a center for paranormal research,” the commissioner said, provoking laughter from committee members.

After his appearance before the finance committee, Shelton said he would like to consult with the Preston town government and Mohegan Sun as he shapes his development.

Preston bought 393 acres of former hospital land on its side of the municipal boundary in 2009 for $1 but has yet to finalize any redevelopment agreements. Mohegan Sun is directly across the Thames River.

“I’m happy; everything is going well,” said Osten, whose district includes the Norwich tract.

The sale is expected to close in 60 days. The executive and the commissioner both noted Shelton has been eyeing the property for several years. During a state-run bidding process, seven entities expressed interests in portions of the land, but Thames River was the only one that wanted all 49.65 acres, DeFronzo said.

Attorney General George Jepsen’s approval is also required. The attorney general had not received notice from the General Assembly, spokeswoman Jaclyn Falkowski said late Thursday afternoon.

The property’s value is assessed by the Norwich city government at more than $10 million and the sale will enable the city to begin collecting $247,000 a year in tax revenue, DeFronzo said. The City Council wrote a letter to both committees endorsing the sale.

The wide difference between the assessed value and the sale price is explained by the fact that a “sizable” environmental cleanup, with one estimate as high as $5 million, will be required, the commissioner said.